Info-paedia : Ethanol Blended Petrol (EBP) Programme

Info-paedia : Ethanol Blended Petrol (EBP) Programme

Why in News?

  • The Cabinet Committee on Economic Affairs has approved higher ethanol prices derived from different sugarcane based raw materials under the EBP Programme for the sugar season 2022-23.

Status

  • India is the world's fifth largest producer of ethanol after the US, Brazil, EU and China.
  • Target of average 10% blending was achieved in June, 2022.
  • Target of 20% ethanol blending in petrol is advanced to 2025 (Earlier 2030).

Significance

  • Cheaper , efficient and less polluting fuel vis-a- vis Petrol.
  • Lowering crude oil imports and energy security.
  • Towards a Greener economy and transition to a low carbon economy.
  • Enable local enterprises and farmers to participate in energy economy.

The EBP Programme

  • Launched in 2003 under the Ministry of Petroleum & Natural Gas.
  • GoI has notified "administered price" of ethanol since 2014.
  • Under EBP programme OMCs sell petrol blended with ethanol up to 10%.
  • The EBP is extended to the whole of India except UTs of Andman &Nicobar Islands and Lakshadweep islands since April,2019.

Government Measures

  • Amendments to National Policy on Biofuels, it will allow more feedstocks for the production of biofuels.
  • Use of E12 (Ethanol:Petrol=12:88)& E15 automotive fuel notified.
  • Union Budget 2022-23 announced an additional differential excise duty on unblended fuel.
  • Interest subvention scheme extended to grain-based distilleries.
  • Simplified Environmental Clearance procedures.